Framework and Methodologies

Details on the framework, indicators, data and assessment methodologies used in the Climate Action 100+ Net-Zero Company Benchmark

The Benchmark draws on two distinct analytical methodologies and data-sets, both designed to evaluate focus company performance and provide greater insight for investors and companies. Please also refer to the data usage terms and conditions and company review and redress process.

DISCLOSURE ASSESSMENT INDICATORS

assessed by Transition Pathway Initiative

The Disclosure Assessment Indicators draw on public and self-disclosed data from companies. These are collected from sources such as company annual reports, sustainability reports, press releases, and CDP disclosures. The Benchmark is not a disclosure mechanism or database itself, rather an assessment tool. Companies are assessed against ten indicators:

(1) Net-zero GHG Emissions by 2050 (or sooner) ambition
(2) Long-term (2036-2050) GHG reduction target(s)
(3) Medium-term (2026-2035) GHG reduction target(s)
(4) Short-term (up to 2025) GHG reduction target(s)
(5) Decarbonisation strategy
(6) Capital allocation alignment
(7) Climate policy engagement*
(8) Climate Governance
(9) Just Transition (not assessed for 2021)
(10) TCFD disclosure

Each indicator comprises 1-3 sub-indicators; sub-indicators are comprised of 1-2 metrics. Each metric is assessed on a Yes/No basis from information and evidence published by the company. Sub-indicators and indicators are also assessed on a Yes/No/Partial basis (or Not Applicable/Not Assessed). The assessments do not present an overall (or aggregate) score or ranking for the company.

For more detail on the framework, indicators, data sources and assessment methodologies, please refer to the documents below.

 

Disclosure Assessment ResourcesDescription
Select your language below to download the Climate Action 100+ Net-Zero Company Benchmark Framework.

Summary of the indicators, sub-indicators and metrics that comprise the framework.
Climate Action 100+ Disclosure Indicators: assessment methodology and indicator guideDetailed indicator-by-indicator guidance used to collect company data and assess disclosures. It also contains a summary of how assessments are presented (‘traffic light system’), as well as contingencies between indicators.
Transition Pathway Initiative Carbon Performance methodologyHow TPI assess emissions targets/intensities’ alignment against reference climate scenarios (Benchmark indicators 2.3, 3.3 and 4.3). Relevant sector-specific methodological notes can also be found on their publications page.
Investor Guide to support Climate Action 100+ engagement in AsiaInvestor guide on how the Benchmark and TPI tools can be used together. Although the guide has a focus on supporting engagement in Asia, it is generally applicable across regions.

*In addition to the Benchmark, InfluenceMap provides detailed Paris-aligned analyses of corporate climate lobbying. These are referenced in the Benchmark company assessments.

CAPITAL ALLOCATION ASSESSMENT INDICATORS

assessed by CARBON TRACKER INITIATIVE and 2° Investing Initiative

Carbon Tracker Initiative (CTI) and 2° Investing Initiative (2DII) also analyse companies’ capital expenditures (CapEx) and output relative to a range of future climate change scenarios to provide additional insights on the relative adequacy and alignment of company actions with the Paris Agreement goals. Both organisations use independent methodologies and asset-level inventory data sources which vary depending on the sector. These additional assessments are included for upstream oil & gas companies, electric utilities (coal and gas generation assets) and automotive companies.

More information on the metrics and analysis provided by CTI can be found here. This includes company profiles relevant to the Climate Action 100+ focus list.

More information on the metrics and other tools on offer by 2DII can be found here.

EXPLORE THE COMPANY ASSESSMENTS

The first iteration of the Net-Zero Company Benchmark assesses 159 of the Climate Action 100+ focus companies. The Benchmark resets and clarifies investor expectations of what the focus companies must do to align with the goals of the initiative, while providing a mechanism for tracking progress.

See the assessments